California Governor Arnold Schwarzenegger recently signed into law SB 940 which clarifies when temporary agencies must pay their employees. Under the law employees of temporary agencies must generally be paid on a weekly basis. If the temporary employees are assigned to a client on a “day-to-day basis” or as replacement workers in a strike, they would be required to be paid daily. Unless the temporary workers are paid weekly in compliance with the bill, it would not apply to such workers assigned to a client for over ninety consecutive calendar days. In conjunction with existing laws, terminated employees would still be required to be paid on the day of discharge or within seventy-two hours if they quit without notice. Since other provisions and exceptions apply, we strongly recommend that all California temporary employers review their wage payment policies and consult with their attorneys if they have any questions.